According to the exchange, this step is part of its broader mission to “bridge the gap between the crypto economy and traditional finance.”
In its statement, Coinbase emphasized that applying for the charter does not mean it wants to become a bank:
“Coinbase has no intention of becoming a bank. It is our firm belief that clear rules and the trust of our regulators and customers enable Coinbase to confidently innovate while ensuring proper oversight and security.”
The crypto market is global, and we need uniform national rules to protect every consumer as the market continues to evolve.
That’s why we’ve applied for a @USOCC national trust charter and the federal regulatory oversight and clarity that it provides.
By securing this license, Coinbase expects to expand its operations into payments, custody services, and related offerings under clearer regulatory guidance.
Benefits of the National Trust Charter
Former Coinbase employee Luke Youngblood, who played a key role in creating the exchange’s staking rewards, explained that the charter could help Coinbase reduce reliance on third-party banking partners.
“It would allow Coinbase to offer basically built-in on-ramp, off-ramp, and no longer have to use partner banks,” Youngblood said.
This would effectively give Coinbase more direct control over customer deposits and withdrawals, potentially improving efficiency and lowering costs.
Improved Retail Experience
Youngblood also noted that Coinbase’s retail application has significantly improved since 2022, highlighting the company’s investment in top engineering talent. Features like the Coinbase debit card, which were once limited in functionality, are now much more robust.
Coinbase isn’t alone in this pursuit. Circle, the issuer of USDC stablecoin, filed for a National Trust Bank license on July 1, and Ripple Labs followed shortly after with its own application.
Ripple CEO Brad Garlinghouse said that approval would mark “a new and unique benchmark for trust in the stablecoin market.”
Political analysts note that while trust companies traditionally face more limitations than banks, the line between the two has blurred in recent years as regulators adapt to digital asset innovation.
Coinbase’s application for a National Trust Charter signals its long-term commitment to regulatory compliance and financial innovation. While it insists it is not becoming a traditional bank, the license would provide greater independence from third-party banks, expanded service offerings, and stronger regulatory oversight.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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